Buffalo Bills Sale Book's Most Important Number

What is the most important number that has been revealed about the Buffalo Bills sale in documents related to the team's sale?

Forget the $250 million in revenue the NFL team generated during 2013. And forget the $38 million the Bills posted in operating income (earnings before interest, taxes depreciation and amortization) last season. I say toss out those two numbers-even though NFL team transaction prices are largely based on multiples of revenue and operating income.

Here is the key number for the groups bidding for the team: $80 million. That is the amount by which the NFL is expected to increase league revenue that it gives to its 32 teams from national media (
Fox, NBC,
ESPN,
CBS, DirecTV) and licensing deals over the next four years. During the 2013 season that figure was $170 million per team (slightly less than 60% of the league's total revenue).

2012 Buffalo Bills Training Camp (Photo credit: Dougtone)

For a team like the Bills evenly shared league revenue is particularly important because the team ranks near the bottom in revenue that is not equally divided (mainly from stadium premium seating and advertising) among the NFL's 32 teams. So no matter how low the team's stadium revenue, the buyers know the increase in revenue that they can count on from the NFL.

Figure players will get half of the $80 million. So, on average, the team's operating income will increase $10 million a season, assuming other operating expenses remain constant. That has to be comforting news for bidders while the team awaits a new stadium--either in Buffalo or Toronto.